Ethereum May Face 20% Pullback as Key Support Level Grows Weak

Ethereum and the aggregated crypto market has been closely tracking Bitcoin’s price action over the past week, which has resulted in a choppy trading session for ETH that has ultimately led it to drop back towards $185 – which remains a critical support level for the cryptocurrency.

Although ETH is likely to find some support around $185 in the near-term, further weakness in the crypto market may lead it to plunge below this price level, and one analyst is noting that it may target $155 next.

At the time of writing, Ethereum is trading down nearly 4% at its current price of $188 and is currently trading down slightly from 24-hour highs of just below $200.

Over the past seven days, ETH has faced an influx of selling pressure each time it visited the $200 region, which signals that this price region is a key level of resistance that may prove to be insurmountable for the cryptocurrency in the near-term.

Josh Rager, a popular cryptocurrency analyst on Twitter, shared his thoughts on Ethereum’s price action in a recent tweet, explaining that its current price region may not be one of significant accumulation, despite what many analysts and investors had previously believed.

“$ETH Update: Some have called this a mega opportunity, I continue to watch for a confirmed reversal. ETH has been unable to break & hold above the 20MA for past six months. VPVR doesn’t suggest heavy accumulation yet at these levels. BB suggests incoming volatility – be careful,” Rager noted.

$ETH Update

Some have called this a mega opportunity, I continue to watch for a confirmed reversal

ETH has been unable to break & hold above the 20MA for past six months

Will ETH Target $155 Next? One Analyst Thinks So…

Assuming that $185 does end up failing to be a strong level of support for Ethereum, Mitoshi Kaku, another popular crypto analyst on Twitter, explained that the next key support level currently exists around $155.

“A couple dates I have my eyes on for $ETH – Let’s see if that Kumo keeps offering a warm support! $155 is a key level,” he said while pointing to the below chart.

A couple dates I have my eyes on for $ETH – Let’s ser if that Kumo keeps offering a warm support! $155 is a key level. pic.twitter.com/8Q4MMGuNRI

— Mitoshi Kaku 👨🏻‍🚀 (@CryptoSays) August 23, 2019

It is highly probable that ETH’s near-term price action will largely be dictated by that of Bitcoin, but a break below the key support levels that lies just below its current price could lead to a bout of capitulation that perpetuates its recent downtrend.